How to Start Investing With $100 in New Zealand

The Barrier Is Gone

A decade ago, investing in New Zealand required meaningful capital to clear fund minimums, pay brokerage fees, and navigate the limited product range available to retail investors. That barrier has been dismantled.

In 2025, you can start with $1 through Sharesies, $1 through Kernel, or $250 through InvestNow. A $100 investment is not only possible — it is a genuine, sensible starting point.

Option 1: Kernel Index Funds ($1 minimum)

Kernel Wealth offers a range of low-cost NZ and global index funds:

• Kernel NZ 20 Fund: New Zealand's top 20 listed companies. 0.25% annual fee.
• Kernel Global 100 Fund: Top 100 global companies (heavily US exposure — Apple, Microsoft, etc.). 0.25%.
• Kernel High Growth Fund: Diversified global + NZ equities. 0.25%.

Set up a monthly investment plan from $1/month. No brokerage on purchases. Tax is handled internally (PIE structure) — no FIF calculations required.

For $100: Open a Kernel account, deposit $100, buy the High Growth or Global fund. Done in 15 minutes.

Option 2: Sharesies ($1 minimum)

Sharesies is New Zealand's most popular retail investing platform with over 600,000 users. It allows:

• NZX shares: Individual NZ companies and Smartshares ETFs (NZG, TWF, USF)
• ASX shares: Australian companies and ETFs
• US shares: US-listed ETFs (Vanguard VOO, VTI, iShares IVV) in fractional amounts

Fees: 0.5% per transaction (capped at $10 for NZX, higher caps for US trades) + monthly subscription (starting from $0 on base plan for limited functionality; $5/month for Standard with unlimited US trading).

For $100: Buy Smartshares TWF (Total World Fund) on NZX for a globally diversified ETF inside a PIE structure. Brokerage: approximately $0.50 per trade. Tax handled by the fund.

Option 3: InvestNow ($250 minimum)

InvestNow is a managed fund platform aggregating products from Vanguard Australia, Dimensional, Pie Funds, and others. Minimum $250 for most funds.

Recommended for $250+: Vanguard Balanced Growth (70/30 split, 0.20% MER) — one of the best risk-adjusted low-cost options available in NZ.

Option 4: KiwiSaver Voluntary Contributions

If you are already KiwiSaver enrolled and want to invest $100, making a voluntary contribution via IRD or your provider is simple:

• Go to Inland Revenue myIR portal → KiwiSaver → Make voluntary contribution
• Funds invest in your chosen KiwiSaver strategy
• Counts toward the $1,042.86 threshold for the government member tax credit ($521.43/year)

Locked until 65 (or first home), but tax-efficient and eligible for the government top-up.

What to Invest In: Beginner's Guide

Goal	Vehicle	Product
Long-term retirement (access at 65+)	KiwiSaver	Growth fund (Simplicity, Kernel, Booster Glidepath)
Long-term, accessible wealth	Kernel / Sharesies	Global index fund or TWF
Simple all-in-one	InvestNow	Vanguard Balanced Growth
US market exposure	Hatch / Sharesies	VOO or VTI

For most new investors: Kernel High Growth or Simplicity Growth Fund. Globally diversified, PIE-taxed, low fee, minimum $1.

The Monthly Contribution Effect

Monthly Investment	Annual Return	After 30 Years (NZD)
$100	7%	~$121,997
$200	7%	~$243,994
$500	7%	~$609,985

These figures assume no CGT (consistent with current NZ tax law) and tax-efficient PIE structure. The numbers are genuinely life-changing from ordinary monthly contributions.

New Zealand's No-CGT Advantage

Unlike Australia, the UK, or the US, New Zealand currently has no general capital gains tax on investment portfolios. When you sell shares or fund units held without primary trading intent, the capital gain is not taxable.

This means:

• Your $100 investment grows, compounds, and can eventually be sold without a CGT event
• Reinvested dividends and distributions compound without a tax drag on gains
• The effective long-term return is higher for NZ investors than for equivalents in CGT-applicable jurisdictions

This advantage makes the "start now, invest regularly, hold for the long term" strategy even more powerful for New Zealanders than for their international peers.

Your First Three Steps

1. Open Kernel or Sharesies (both online, free, 15 minutes)
2. Deposit $100 and buy a global index fund or ETF
3. Set up a $50-$100/month automatic investment on pay day

The first investment removes the psychological barrier. Monthly automation builds the habit. Consistency is the compound interest multiplier that makes the difference over decades.